BUZZ - Refiner Delek shares stabilize after issuing $400 million convertible bonds

September 25 - ** Shares of refining company Delek US Holdings DK.N fell 0.6% in premarket trading on Friday to $66.50 after the company successfully completed a financing round

** The company announced late Thursday (link) that it has priced a $400 million private placement of convertible senior notes with a 0% coupon, due November 1, 2031

** The conversion price is set at $85.31, which is 27.5% higher than Thursday’s closing price of $66.91

** On Thursday, DK shares declined for the fifth consecutive trading day, closing down 7.4%, after the company (link) disclosed that the proceeds from the offering will be used for general purposes, including partial repayment of term loans

** The company plans to use part of the raised funds to enter into capped call transactions; the capped price of $117.09 represents a premium of about 75% over the latest closing price of the stock

** As of Thursday, the stock has risen nearly 126% so far this year. In comparison, the S&P 600 Oil, Gas & Consumable Fuels Index .SPSMCOIG rose 34%, and the S&P 1500 Oil, Gas Refining & Marketing Index .SPCOMENRM rose 123%

** According to London Stock Exchange Group (LSEG) data, the average rating from 13 analysts is “Buy”; the median target price is $72, up from $50 on June 25

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